Port Tobacco times, and Charles County advertiser., 1887-02-04
rio obQrroGimesi
PORT TOBACCO:
fay Morning..........February 4, 1887
The Taxation of Mortgages.

vital importance to the farming interests;
and that our worthy agricultural ex-Gov-
ernor, who claims to have the interests OF
his fellow farmers much at heart, while
deploring so loudly The oppressive burdens
of taxation, failed entirely to make any
reference to measure which would
operate so directly to Tighten the burdens
of ia xation upon the tillers of the soil.
1t is known that, instead of advocating
the reinstatement of the tax on mortgage
debts, the ex Governor has been all along
very decidedly opposed to that measure.
In view of his apparent zeal in the cause
of tax reform, the Governors attitude re-
garding this measure, which would ope-
rate so directly to Tighten and equalize the
burden oftaxation upon agricultural lands,
has been from time to time sharply criti
clsed as patent Inconsistency on his part
and his motives have been repeatedly call
ed in question. 1t has been even charged
that the fact that the Geverner is himself
a large holder of mortgages upon real
estate is the true motive of his action in
this respect.
However this may be, and whatever
may be the motive which prompts men
who pretend to clamor for an alienation
of the burdens Of the farmer, to overlook
this important measure, the enlightened
public opinion of the State seems to be
rapidly setting down to the conviction
that the time is quite past when any pub
lie necessity existed for this manifest in
equality in the assessment of taxes. When
the existing law exempting real estate
mortgages from taxation was enacted,
abundant opportunities for the invest
ment OF capital was attainable on all sides
and the rates of interest were high. This
being the case, capitalists were unwilling
to keep their money invested in land
mortgages at 6 per cent. less the rate of
State and county taxation, which in most
of the counties at that time appropriated
to per cent. and in many exceeded that
rate They would prefer to put their mo-
ney in q. S bonds, which we're then be-
ing issued at high rate of interest and
exempt from taxation. Recognizing this
fact, and in order to keep their locally in
vested capital at home, the Legislatures
of some of the States were amending their
usury laws so as to allow high rate of
interest. Instead of that the Maryland
Legislature adopted the wiser course of
exempting mortgages upon land from tax
alton. This measure at that time was
fully justified by the emergency which it
WAS aimed to meet and was directly in the
interest of the farmer.
But 10 intelligent observer can gravely
contend that the emergency which promp-
ted this law exists. On the contrary it is
manifest on all sides that money is as easily
attainable and the rates Of interest are as
low, as they were in the period immedi-
ately preceding the civil war when the
holders of real estate mortgages paid their
State and county taxation upon their in
vestment uncomplainingly. When we look
at the government 8 per cent. bonds com
manding premium and safe loans at
similar rates of interest being negotiated
on all sides it is hardy fair to assume that
any sensible man whose money is invested
in safe mortgage upon land and paying
him net rate of interest at 5 per cent.
or upwards according to the rate of of To-
cal taxation, will be axious to collect his
principal, as long as he receives his inter.
est promptly.
1t is safe, then, to say that the circum'
stances which prompted the enactment Of
the law exempting land mortgage loans
from taxatien no longer exist, and it is {
maxim of the law that 1.-The reason ceasing
the law itself ceases" 1t is manifestly
just and proper that when the reason TO-
the enactment of statute law has entirel.
ceased and passed away, the law itsel
should no longer be kept in operation
There is no doubt that the mortgage hold
ers would be we'll content to continue tt
receive the per cent. interest free OF al
taxation and if their wishes and interest
are to be alone consulted by the law max
ers, the law will be allowed to stand; bu
If the interests of the practical farmers ar
to be taken into consideration, the Law
will be promptly repealed.
There is little doubt that this will b
done by the next Legislature. 1t woult
in all probability have been done by th
last Legislature, but for the rumors of ap
preaching stringency in the money mar
ket which were then in circulation, bu
which have not been at all realized. An'
when the law is repealed and the tax up
on mortgages is reinstated, a .provisio
should lie made erempting the holder Of taa
alton to the ertent Of all outstanding bon
.16de mortgages upon his land. This mani
festly just measure would lift heavy bul
den from the shoulders of the much or
pressed and over -burdened tiller of tn
soil and place it upon a class much bette
able to bear it and upon whom it shoul
in Jus ice rest.
There are now five Maryland nomina
tions pending before the Senate commit
tee on commerce, upon which the Senat
can take no action until they are reporte
from the committee. The gentlemen il
terested are Mr.. Curran, to be inspector {